The studios are set to present their settlement to U.S. District Court Judge Gary Feess on Friday morning and ask that the case be dismissed. The terms of the settlement were not disclosed, but it was believed that Fox were to receive a large cash payment from Warner, plus a percentage of the box office receipts.
In addition, Fox will not have any ownership stake in the film, or future films, and will not be distributing the film as well. The studios were said to announce this joint venture on Friday morning.
Watchmen will be released nationwide on March 6.
UPDATE: (9:30 AM PST) Both Warner Bros. and 20th Century Fox have released this joint statement announcing the settlement.
Warner Bros. and Twentieth Century Fox have resolved their dispute regarding the rights to the upcoming motion picture Watchmen in a confidential settlement. Warner Bros acknowledges that Fox acted in good faith in bringing its claims, which were asserted prior to the start of principal photography. Fox acknowledges that Warner Bros. acted in good faith in defending against those claims Warner Bros. and Fox, like all Watchmen fans, look forward with great anticipation to this film's March 6 release in theatres.